The founders of the Morgenthaler Technology Investment Company announced on Thursday that its new fund called Canvas Venture Fund raised USD175 million. The founders, who are former partners of the venture capital firm Morgenthaler Ventures, set a new company to invest in software companies that are in their early stage. Gary Little, Rebecca Lynn and Gary Morgenthaler would still be keeping their positions as partners at Morgenthaler Ventures.
To generate funds for Canvas, it involved reaching out to former investors who had already invested money to current, larger funds of Morgenthaler Venture. Initially, Canvas Venture had a USD150 million cap. Little, Lynn and Morgenthaler allowed the fund size to increase up to USD175 million.
However, one investor was concerned about the size of Canvas Venture Fund. Co-managing general partner at Greenspring Associates Ashton Newhall said, "On balance, we would have preferred them not to have done that. But I think there's a rather cohesive argument for why, and what they're planning to do."
According to Canvas, its investments would large stakes around the USD5 million to USD15 million range. Moreover, the decision to invest would be done on a selective, thoughtful approach.
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